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August 25, 2011

AmazonLocal Daily Deals Site Adds New York Market

By Oliver VanDervoort, Contributing Writer

Over the last year there has certainly been a bit of a discussion as to whether or not daily deals sites are actually here to stay or whether they will eventually fade away into obscurity. While Groupon and Living Social are certainly the kings of this particular medium at the moment it seems like there is a new daily deals site popping up daily. Among the relatively new daily deals sites is DealChicken which is currently in about 10 markets but expects to have a presence in 50 different locations by the end of the year.



Some deals sites are trying to go off the beaten path with their offerings. Kiip is a company that is pairing with mobile app developers as well as more traditional retail companies in order to bring gamers various prizes for certain accomplishments. This particular business model is still relatively untapped and could catch on should the startup show even moderate success.

The more traditional blueprint laid out by Groupon is still the one most of the newer daily deals sites try to emulate, even if they have the money and backing to try and offer up something bigger and better. Amazon.com (News - Alert) is the latest company to ramp up their attempts at a big time deals site with the recent announcement that they will be entering the New York market. AmazonLocal actually started off in Boise, Idaho and the company says the site is offering deals to people in over 30 markets. 

AmazonLocal boasts that when people use their service and are located in one of the select markets where the company is currently operating, they will be able to get a 50 percent or more discount on tickets, food and other merchandise. While AmazonLocal is most heavily invested in California, Washington and New York they do have markets that are spread across the United States including Northern Virginia and Birmingham, Alabama. 

This expansion from Amazon comes despite some less than impressive numbers being released when it comes to the flagship company of the daily deals sites. The most recent Groupon IPO filing showed a 12 percent drop in its revenue per subscriber during the last quarter.

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Edited by Jennifer Russell
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